Employee Relations-chapter 3.pptx

CHAPTER -3 Course: Employee Relations Course Code: BSHR3207 Specialization: Human Resource Department of Business Studies Outcome: 3&6 Describe the environmental factors affecting ER Explore ILO and Oman Labor Law in the context of ER Contents: Players involved in employee relations? Changing roles...

CHAPTER -3 Course: Employee Relations Course Code: BSHR3207 Specialization: Human Resource Department of Business Studies Outcome: 3&6 Describe the environmental factors affecting ER Explore ILO and Oman Labor Law in the context of ER Contents: Players involved in employee relations? Changing roles of players in volatile environment Role government in Employee relations: Analysis of UK, US & Oman context 2 Chapter synopsis/ outline: References:  P.N. Singh & Neeraj Kumar, July 2010. Employee relations management, Pearson India ISBN: 9788131726013. Philip Lewis, Adrian Thornhill, Mark Saunders, 2003. Employee Relations: Understanding the Employment Relationship, Financial Times Prentice Hall, 2003. ISBN: 0273646257, 9780273646259.  John Gennard , Graham Judge, 2005. Employee Relations, CIPD Publishing. ISBN: 1843980630, 9781843980636.  D P Sahoo , February 26, 2020. Employee Relations Management: Text and Cases First Edition. SAGE Publications Pvt. Ltd; ISBN: 9353287073, 978-9353287078.  Wilkinson, A., Redman, T. and Dundon, T. (2017). Contemporary Human Resource Management: Text and Cases. 5th edn. London: Pearson.  https://ecommons.cornell.edu/bitstream/handle/1813/75531/Colvin7_Employment_relations.pdf?sequence=1  https://www.worker-participation.eu/National-Industrial-Relations/Countries/United-Kingdom/Workplace-Representation.  https://directory-oman.com/labourlaw.htm References: RELEVANT WEBSITES: 1.http://www.employment-studies.co.uk/report-summaries/report-summarychanging-roles-senior-managers. 2. https://www.prosci.com/change-management/thought-leadership-library/roles-inchange-management. 3. http://onlinelibrary.wiley.com/doi/10.1111/j.1467-8543.1986.tb00678.x/abstract Introduction: Important players and their roles in employee relations-: Important players and their roles in employee relations-: Role of Government: Government has come to play an increasing role in employer- employee relations to protect the interests of both employers and employees. Government evolve, influence and regulate employeremployee relations through laws, rules, agreements, awards of courts, executive and financial machinery. The Government plays an increasing role in employer-employee relations in part by becoming the biggest employer and partly by regulating working conditions in the private sector. In addition, the Government has set up wage boards, labor courts, tribunals and other bipartite and tripartite bodies to maintain healthy relations between employers and employees. Important players and their roles in employee relations-: Role of Manager: The team leader or the manager plays an important role in promoting healthy relation at workplace. Employees must be comfortable with each other and work in unison towards a common goal. In fulfilling these goals the managers must consider the following; It is important that the team leader understands his team members well and assign tasks as per their specialization and interest. A team leader should be a role model to his team members. He should treat each and every individual as one and avoid partialities at work. The manager must ensure that all important communication takes place on an open forum for everyone to get a common picture. As a team leader it is one’s prime responsibility to encourage healthy competition at work. Important players and their roles in employee relations-: Role of Trade unions: Trade unions are set up to protect and promote the interests of employees. The existence of a trade union reduces the possibilities of industrial conflict (Dillon, 2009). Trade unions play a vital role in matters of workplace conflict, wages, joint ventures, unfair practices, legislations, outsourcing etc. Trade unions not only represent employees to discuss their pay and benefits, but also provide a voice for the employees to be heard on various other aspects of personnel policies. These include selecting employees for lay offs, retrenchment, promotion and transfer. Other key features of unions include: working with management to help resolve workplace issues being an advocate for employees ensuring employers are meeting their minimum obligations looking into suspected breaches of: workplace laws discrimination laws workplace safety laws. Important players and their roles in employee relations-: Role of Trade unions: The role of trade unions has changed significantly over the past 30 years. Global competition, a growing trend in outsourcing, legal constraints, and employer sponsored forms of employee participation have combined in precipitating a significant fall in union membership and the coverage of collective bargaining. The coming decade promises to be equally challenging for the trade union movement. How they respond to the challenges and opportunities over the next few years will be crucial in determining their level of influence at work and beyond in the future. Role of E.R. players in changing business environment Changing role of Unions also meet considerable challenges in representing certain groups of workers in today’s labor market. Apart from declining overall membership, the vast majority of younger workers and new labor market entrants are not joining unions. The growth in short-term employment contracts, agency labor and other forms of ‘atypical employment’, and the trend among firms to outsource their non-core activities to other firms, have made it increasingly hard for unions to organize and create resilient labor standards across industries. Video reflection session: https://www.youtube.com/watch?v=nESQX_qTZzA Watch the above video link and put answers to the following questions: What is a trade union? Why did the union activities and influence declined? In your opinion, after watching the video, do all companies need trade unions? Justify your answer. Role of E.R. players in changing business environment Changing management and labor interests From management's point of view, it needs a highly skilled, flexible workforce that fills in the gaps that middle managers used to fill in terms of spotting problems and generating solutions at the working level. Management needs a workforce that is willing and able to learn new tasks and perform new functions. It needs workers who have well developed 'soft' skills such as the ability to communicate clearly and respectfully, to listen actively, to empathize and to react to situations non-defensively. Where as labor need a good basic education system and initial job training but also continuing opportunities for skills development to develop the analytical skills required to be productive in an information-driven workplace where there are no 'norms'. Employees also expect safe and desirable working conditions, secure employment, and fair opportunities for employment and promotion. Role of E.R. players in changing business environment Labor and management working together to meet changing interests: In recent years, employers, workers and unions have come together to create non-traditional structures to draw upon both sides' resources at the plant level, the company level, and the sectoral level to meet the new challenges. In addition, there are a growing number of private sector human resources and labor relations consultants working with organizations to provide flexible, 'just-in time' responses to the upcoming labor relations challenges. More progressive companies and their unions have used the collective bargaining process as a means to tackle the competitive pressures resulting from globalization, as opposed to using the process to resist such pressures. Employee Relations in UK State’s objective in intervening in employment relations is to achieve economic and social goals for the nation as a whole. One of the prime tasks of government is to manage the economy so that it is prosper. Hyman (2009) advocated broad methods of intervention include the government as: An employer in its own right -A regulator of incomes and prices An economic manager A protector of standards A rule-maker and legislator A promoter of social citizenship guidelines. Role of British government in Employee Relations Britain in the role as an employer in its own right holds a view that State should act as a responsible employer, thereby sending signals to the private sector about how people should be treated at work. In return for this, public sector employees and trade unions accepted a reciprocal obligation to try to avoid conflict in employment relations (Winchester, 1983). A second means by which the State is able to intervene in employment relations is through its role as an incomes regulator. Since the end of the Second World War Britain have felt a need to regulate prices and wage increases, with the aim of controlling inflation. For example, in the 1970s the government consulted with employers and unions in an attempt to set acceptable income policies for the country. Role of British government in Employee Relations Another method of intervention by the State is as the economic manager of the country. As a method of intervention, this centres around macro-economic policies in terms of money supply, aggregate demand and fiscal regulations that can affect the operation of the labour market and utilisation of manpower. for example, by operating employment exchanges to link those seeking work with those who have employment to offer. A fourth and equally important role is the State as a protector of minimum standards in employment. These standards have existed in different ways since the beginning of the twentieth century: for example, in 1970s a great deal of protective legislation was introduced in relation to unfair dismissal, race discrimination and equal pay. Role of British government in Employee Relations Fifth, and perhaps the most visible method of intervention in employment relations by the State, is its role as a rulemaker and legislator. This involves direct promulgation of legislation such as Codes of Practice issued by Advisory, Conciliation and Arbitration Service (ACAS) that define good employment practices and procedures, laws against child labor or racial discrimination in employment, and finally, minimum wage regulations. Finally, governments pursue a number of policy objectives that shape the idea of social citizenship, which reflects the extension of wider political democracy in the narrower domain of workplace governance, where employees can expect to be consulted and treated with respect by employers. Student Group-Work Session After gaining all the knowledge about the role of a government in a country, as a group read some information about the role of the government in Oman. After that, think of some responses to the following questions: 1. For example, if your group found out the government’s role as an economic manager, what examples or information you could find online about the activities that Oman government did to regulate the economic conditions in the country? Employee Relations in US According to the available data small and micro enterprises account for around 30% of the total US employment. The United States has three basic laws governing basic employment relationships: the National Labour Relations Act (Wagner Act), the Labour Management Relations Act (Taft-Hartley Act), and the LabourManagement Reporting and Disclosure Act (the Landrum-Griffin Act). Federal government authorities throughout the country enforce these laws. Employment relations amongst US smaller enterprises benefit from a number of issues such as informal communication, direct supervision, more broadly-defined jobs, the ability to capitalise on strengths of individual employees to meet customer needs, and the critical importance of individual employees to the organisation’s success. Role of U.S. government in Employee Relations However employment relations in US small firms are also characterized by a number of negative points: 1.Large employers offer much higher wages than small employers, even when differences in employees’ education and experience and the nature of industry are taken into account. 2. Large employers also offer better benefits. The lower of fringe benefits offered by small firms is due at least to higher peremployee costs of some fringes. 3. Working condition provided by large employers still pay more than their smaller counterparts. In addition, various indicators of employees’ satisfaction with the work environment do not indicate that conditions are more favorable in small firms. 4. The jobs and layoffs in large employers provide greater, not less, security than those generated by small employers. Role of U.S. government in Employee Relations US government advocated following measures to ensure good labor relations Labor Management: Labor Relations represents management in labor/management concerns. Formal labor management meetings and informal consultations with union leadership are integral aspects of working together to constructively resolve workplace issues. Contract Grievances: Each collective bargaining agreement contains a grievance process that generally provides for the review of an allegation that a specific provision of the agreement has been violated. Labor Relations serves as the President's designee in hearing contract grievances. Labor Relations advises the department when a grievance is received to discuss possible resolution, and supports problem resolution at the earliest opportunity. When resolution is not possible, the Labor Relations Manager issues a decision which may be appealed by the union through several steps to a final review at arbitration. Counseling and Discipline: On occasion, a supervisor may encounter a situation involving an employee that may warrant counseling or discipline. Labor Relations provides consultation and guidance to supervisors concerning these issues. We strongly encourage supervisors to contact us with questions regarding these situations. In the event that disciplinary action may be warranted, the matter is referred by the supervisor to Labor Relations who will conduct an investigation of the matter. Role of Oman labor laws in Employee Relations The Sultanate of Oman joined the International Labor Organization (1994) under the Royal Decree No. (10/94) on 9/1/1994. And since its accession to the organization, the Ministry of Manpower and annually participates in all conferences held periodically in Geneva in July of each year and in the presence of the three production parties (governments - employers - and workers). The Omani labor law issued by Royal Decree No. 35/2003 is regarded as the first step paving the way for the formation of trade unions in the Sultanate of Oman. This law granted the workers in the private sector establishments the freedom to form among themselves representative committees aiming at enhancing and protecting their rights and interests in the workplace. The law also provided the right to establish a Main Representative Committee to represent all workers in Oman in the local, regional and international events or forums. In 2006, the Omani Labor Law was modified by Royal Decree No. 74/2006 issued on 8 August 2006. The amendments allowed the formation of trade unions aiming at protecting the interests of workers, defending their rights, promoting their social and material status and representing them in all matters related to their wellbeing in the workplaces. Scenario-reflection session: Each group will be given a story of a union strike that happened in Oman. Read and understand the story and think of answers to the following questions: What is the main problem that the employees faced in the workplace? What area in Oman Labor Law that the company did not follow? Justify your answer. How did the communication and negotiation happen between the employees and the top management? In your opinion, was the decision / agreement taken after the negotiation fair enough for both the employers and employees? Justify your answer. Role of Oman labor laws in Employee Relations Specifically, Article 8 of the 2012 MD provides that a registered trade union can exercise the following rights: a. Represent its members and defend their interests. b. Represent any of its members at their request. c. Collect the affiliation fees and subscription set for the membership and manage its assets. d. Exercise any activity related to the promotion and protection of the rights and interests of its members, in particular:  ensuring the members’ safety and health;  raising the trade union’s awareness among members;  raising the members’ culture, technical and occupational level; and o improving the members’ health, economic and social level. Role of Oman labor laws in Employee Relations e. Lodge complaints before the competent department at the Ministry of Manpower (the “MOM”) arising from the establishment’s non-compliance with the provisions of the OLL and its implementing decisions and regulations. f. Peruse the OLL and its implementing decisions and regulations guaranteeing the rights and interest of the workers at the establishment. g. Obtain all necessary facilities from the establishment for the performance of its activities in addition to the appropriate premises for holding its meetings and keeping its documents. Role of Oman labor laws in Employee Relations Article 17 of the 2012 MD further sets out restrictions that prohibit trade unions from engaging in the following activities: i. investments of the trade union’s fund in financial speculations, in unsafe investments, or in investments contradicting its objectives or purposes; ii. for engaging in political activities or any activity which is not specified in its statute; iii. accepting gifts and donations, unless with the MOM’s approval, in which case gifts and donations must be unconditional and not contradictory to the objectives and purposes of the trade union’s activity and to the laws in force in the Sultanate; or iv. assigning its assets whether in rem or in cash. THE EMPLOYEE’S RIGHTS IN OMAN Pursuant to Article 108 of the OLL, the basic right of employees to form a trade union is to safeguard their interests; defend their rights and improve their materialist and social condition; and represent them on all matters relating to their affairs. According to Article 112 of the OLL, an employer who prevents its employees from carrying out their labour union activities, or hinders the formation of labour unions or the General Federation of employees, shall be punished by imprisonment for a period not exceeding one month, and a fine of not more than RO 500, or one of the two penalties. THE COMPANY’S ROLE IN THE FORMATION AND OPERATION OF TRADE UNIONS Whilst there is no statutory provision that defines employer’s rights and the formation and operation of trade unions, it is important to note the following: 1. The OLL provides that a trade union/labor federation/general federation have the right to freely practice their activity without interference in their affairs or exerting influence. 2. No company/establishment can dismiss or otherwise punish a worker’s representative in the trade union/labor federation/general federation by reason of exercising trade union activities. 3. In the event of collective negotiations being conducted between a company/establishment and the representatives of a trade union, the company is obliged to provide necessary data and information to conduct the negotiation. 4. Whilst the negotiation between a company and the representatives of a trade union are ongoing, any measures or decisions taken by the company shall be considered unlawful. 5. In the event that a collective labor agreement is concluded between a company and trade union in accordance with Article 5 of Ministerial Decision 294 of 2006, it is the employer’s responsibility to display the collective labor agreement prominently at the work place. CHAPTER SUMMERY Workers exchange views with management and voice their grievances. Employers have the right to hire and fire workers and thereby control the economic destiny of employers. Government evolve, influence and regulate employer-employee relations through laws, rules, agreements, awards of courts, executive and financial machinery. The team leader or the manager plays an important role in promoting healthy relation at workplace. Trade unions are set up to protect and promote the interests of employees. Business environment has undergone a dramatic shift from manufacturing to services and information. Employers, workers and unions have come together to create non-traditional structures to draw upon both sides' resources at the plant level, the company level, and the sectoral level to meet the new challenges KEY TERMS & REVIEW QUESTIONS KEY TERMS Trade unions: They represent employees to discuss their pay and benefits, but also provide a voice for the employees to be heard on various other aspects of personnel policies. Government role: The Government plays an increasing role in employer-employee relations in part by becoming the biggest employer and partly by regulating working conditions in the private sector. Role of Manager: It is important that the team leader understands his team members well and assign tasks as per their specialization and interest. REVIEW QUESTIONS 1. Explain how management, trade unions and employees are cooperating to meet the new business challenges. 2. Write the changing role of organizational players in the recent past. CRITICAL THINKING & DEBATE QUESTIONS QUESTIONS FOR CRITICAL THINKING 1. Does technology bring coordinated efforts between management and workers? 2. Government laws can enhance good industrial relations. DEBATE 1. Co-ordination between management, employees and trade unions is a myth. 2. Lack of leadership skills among top management is biggest hurdle in employee relations. CASE STUDY The Absorption of Contract Labor: JNK Plastics Ltd had been employing contract labor for loading and unloading of materials and finished goods on a regular basis. The contracts for this job were based on tender invitations for job contracts, and for the past five years, the same contractor has been awarded the job. This year, a mechanized system of loading has been introduced, which has done away with the need of contract labor. The union has been putting pressure on the management for absorption of the labor and deploying them on unskilled-level jobs in the manufacturing unit. Due to intense pressure from the union, the management worked out a voluntary-retirement scheme for contract workmen, which were settled through a tripartite agreement. Forty per cent of the burden is being funded by the management out of its welfare fund. Bring out the legal as well as industrial relations issues in the above case. Discuss the strategy adopted by the management within the constraints of law. Could there have been a better strategy? EXERCISE & ADDITIONAL TOPICS EXERCISE 1. Choose any service and manufacturing firms and identify if there is any difference in employee involvement / participation schemes adopted. 2. Highlight any incident of employee involvement / participation that has been highlighted recently in newspapers of Oman. 3. INTERNET EXERCISE: Visit Oman air website and highlight what are the silent features of employee involvement / participation methods being adopted. ADDITIONAL LECTURE TOPICS Invite HR professionals from your college or university and identify the changing roles of management and employees in the recent past. Invite any HR professional from public sector (Banks) and discuss how management, trade union and employee’s roles have been changing in the organizational setup. CONTACT INFORMATION: Name of the Staff : Dr. Aliya Al-Mughairi Office:: BS054 Email: [email protected] VERSION HISTORY Version No Date Approved 01 Sem. (2) 2022/2023 Changes incorporated 36